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ENERGY POLICY 2024-02 185 (44) answer(s).
 
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1
ID:   193743


Additional or accidental? Simulating interactions between a low-carbon fuel standard and other climate policy instruments in Can / Hoyle, Aaron   Journal Article
Hoyle, Aaron Journal Article
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Summary/Abstract Many jurisdictions are subject to climate action plans composed of multiple policy instruments. As climate policy landscapes become increasingly crowded, understanding the nature and likelihood of interactions between proposed policies and other instruments that make up a policy mix is a key element of policy design. We introduce a technology-rich computable general equilibrium model of the Canadian energy-economy, gTech, to explore the effectiveness of one such policy called the low-carbon fuel standard (LCFS) at reducing greenhouse gas emissions when implemented alongside other climate policy instruments. We find that the ability of a LCFS to reduce emissions depends on the ‘background’ policy mix it is layered on top of, in addition to its credit market design.
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2
ID:   193728


Before dinner: the health value of gaseous fuels / Luo, Yaping; Wu, Jianxian   Journal Article
Wu, Jianxian Journal Article
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Summary/Abstract In this paper, we study the impact of gaseous fuels used for cooking on the middle-aged and elderly's health in China. By using 2011, 2013, 2015, and 2018 waves of the China Health and Retirement Longitudinal Study (CHARLS), we find that gaseous fuel use reduces the probability of respiratory disease in middle-aged and elderly adults. Health effects are stronger for the people aged between 45 and 79, female, high-income, urban, and gas-importing province groups. The quantification of health benefits allows to find that from 2010 to 2018, the reduction in the number of respiratory illnesses due to gaseous fuel use ranges from 22.905 to 23.721 million people, resulting in treatment cost savings of between 9.29 and 14.47 billion RMB ($26.4 - $34.2 billion). The monetary valuation of indoor clean air according to self-rated health find that for each additional unit of indoor clean air, middle-aged and elderly adults are willing to pay a price of 4.5 RMB ($1.06). We provide new evidence of the considerable health and welfare effects of gaseous fuels.
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3
ID:   193736


Can information technology construction alleviate household energy poverty? Empirical evidence from the “broadband China” Pilot / Yan, Hong   Journal Article
Yan, Hong Journal Article
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Summary/Abstract Energy poverty poses a significant challenge to global sustainable development. With the rapid advancement of information technology, understanding its role in alleviating energy poverty holds great practical significance. This paper conducts a case study of the “Broadband China” pilot policy implemented by the Chinese government and utilizes panel data from the China Family Panel Studies (CFPS) over the 2012–2018 period. In a difference-in-differences framework, we empirically investigate the alleviation effects of information technology construction on household energy poverty and its underlying mechanisms. The main findings indicate that (1) information technology construction significantly alleviates household energy poverty and demonstrates a sustained alleviation effect. These results remain valid after a series of robustness tests. (2) Heterogeneity analysis suggests that factors such as the regional economic development level and geographical location distribution can cause varying impacts of information technology on alleviating energy poverty. (3) Mechanism analysis reveals that information technology construction can alleviate household energy poverty through two potential channels: raising residents’ income levels and enhancing their environmental awareness. The conclusions of this paper provide valuable insights into leveraging information technology construction to alleviate energy poverty.
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4
ID:   193723


Changes in consumer satisfaction with electric vehicle charging infrastructure: Evidence from two cross-sectional surveys in 2019 and 2023 / Lin, Boqiang; Yang, Mengqi   Journal Article
Lin, Boqiang Journal Article
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Summary/Abstract Consumer attitude toward electric vehicles is very important for clean development. Chen and Lin (2022) explored the impact of consumer behavioral characteristics on satisfaction with electric vehicle charging infrastructure. The research team builds on this study for further research from a dynamic perspective. This study utilized 3778 valid samples from two cross-sectional surveys conducted in 2019 and 2023 to explore the differences in behavioral characteristics and satisfaction across periods and cities. Mechanisms of influence were also discussed. The main findings include: (1) Consumer satisfaction has increased in 2023 compared to 2019, while charging habits have changed in favor of nighttime charging. Additionally, consumers have lower requirements for charging time and price, and higher requirements for charging infrastructure distribution. (2) Consumers in non-first-tier cities are more receptive to charging infrastructure farther from homes than consumers in first-tier cities. (3) In current first-tier cities, preference for daytime or nighttime charging no longer affects consumer satisfaction, while the price increase sensitivity has a less significant effect on consumer satisfaction in non-first-tier cities. (4) Consumer perceived control and expectation disconfirmation are found to be important mechanisms through which behavioral characteristics affect satisfaction. Finally, this study proposes targeted policy implications based on the findings.
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5
ID:   193718


Choosing both/and: Encouraging green energy purchases in community choice aggregation / Fikru, Mahelet G   Journal Article
Fikru, Mahelet G Journal Article
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Summary/Abstract Community Choice Aggregation (CCA) programs offer green electricity products to satisfy customers’ demand for renewable energy. However, it is not clear how consumers approach combining renewable procurement options, such as installing rooftop solar and subscribing to green electricity. This study estimates the probability that residential CCA customers choose to purchase green energy at a price premium when they have already adopted (1) rooftop solar, (2) non-solar distributed energy resources such as electric vehicles, and (3) a time-varying electric rate. Based on residential customer data from Silicon Valley Clean Energy, a CCA in California, we fit a multi-level probit model that accounts for the potential clustering of green participation rates at the zip code level. Our findings suggest that households with installed solar panels, electric vehicles, time-varying electric rates, and lower energy consumption are more likely to purchase green electricity. Ultimately, this study provides insight into strategies for incentivizing consumers to combine green energy options to achieve broader goals related to climate change and grid resilience.
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6
ID:   193722


Closer economic distance makes positive carbon-related attitude: Evidence from the mechanism of sentiment tendency in worldwide news coverage of India / Sun, Chuanwang; Wu, Boyu   Journal Article
Sun, Chuanwang Journal Article
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Summary/Abstract Distance can influence the emotional attitudes of media coverage in different countries. To effectively promote climate cooperation between countries, it is crucial to understand the emotional tendencies of carbon-related coverage among different countries and their influencing factors. This study examines whether economic distance affects emotional attitudes towards carbon-related coverage of India across different countries. As a major emitter of carbon, India has attracted attention from various countries, leading to successive reporting on its carbon-related issues. Through sentiment analysis of 3894 English articles from different countries, this paper finds that economic distance has a negative impact on the emotional tendencies of direct reporting on India’s carbon-related issues. This result remains robust under various circumstances. The duration of each country establishing diplomatic relations with India is used as instrumental variables to discuss endogeneity. In addition, heterogeneity analysis indicates that economic distance has a relatively significant impact on the sentiments of media in developed countries, low-emission countries, and Europe. The study further reveals that cultural distance reinforces the negative effect of economic distance on carbon-related coverage of India.
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7
ID:   193731


Closing the clean cooking gap: Which policies and institutional qualities matter? / Shittu, Ibrahim   Journal Article
Shittu, Ibrahim Journal Article
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Summary/Abstract Access to clean energy is vital for fostering economic development and promoting shared prosperity. Yet, billions of people in the developing world continue to lack access to clean cooking fuels and technologies, creating a growing clean cooking gap. Achieving universal access to clean cooking requires integrated policies and quality institutions. However, attempts to examine the policies and institutional qualities that matter are missing. We take up this task and study the role of public policies and institutional qualities in closing the clean cooking gap using a generalized method of moment and a dynamic panel threshold model for 65 developing countries covering the period between 2005 and 2022. Our result confirms that economic management policies and policies for social inclusion and equity were critical to closing the clean cooking gap. Also, structural policies, except for a few dimensions, were found to minimize the clean cooking gap. However, we find an unintended adverse effect of a strict public sector management and institution on the clean cooking gap. Our study recommends the need for targeted interventions involving subsidies, tax incentives, and credit guarantees carried out under a flexible regulatory framework.
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8
ID:   193752


Commercial wind turbines and residential home values: New evidence from the universe of land-based wind projects in the United States / Brunner, Eric J.   Journal Article
Brunner, Eric J. Journal Article
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Summary/Abstract We examine the impact of proximity to land-based commercial wind turbines on residential home values in the United States using data on the universe of commercial wind turbines and residential property transactions from 2005 to 2020. Using event study and difference-in-differences identification strategies we find that, on average, homes located within 1 mile of a commercial wind turbine experience approximately an 11% decline in value following the announcement of a new commercial wind energy project, relative to counterfactual homes located 3 to 5 miles away. Event study estimates also reveal important dynamics in the evolution of home values, with property values first declining following project announcement, and then recovering post project construction, with property value impacts becoming relatively small (∼2%) and statistically insignificant 9 years or more after project announcement (roughly 5 years after operation began). Homes located within 1–2 miles of a commercial wind turbine experience much smaller impacts and homes located farther than 2 miles away are unaffected. Our results are primarily driven by wind projects located in urban counties with populations greater than 250,000.
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9
ID:   193713


Compounding or Curative? Investigating the impact of electrolyzer deployment on congestion management in the German power grid / Hobbie, Hannes; Lieberwirth, Martin   Journal Article
Hobbie, Hannes Journal Article
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Summary/Abstract Integrating large amounts of hydrogen production capacities for decarbonizing energy-intensive industries in Germany can be challenging for transmission system operators. This research investigates interactions of hydrogen production deployment pathways and associated congestion management policies with the operation of the German electricity transmission system for future market projections. Hydrogen electrolysis imputes additional electricity loads above conventional levels. A scenario framework is created representing different geographic electrolyzer deployment pathways and congestion management regulations for electrolyzer operation. Fundamental electricity market modeling and load flow optimization are proposed to evaluate resulting congestion management volumes to resolve grid bottlenecks associated with the market clearing dispatch. Overall results of this work highlight the importance of designing congestion management frameworks that enable efficient utilization of electrolyzers as a redispatch capacity, primarily if a demand-oriented deployment of electrolyzer installations near energy-intensive industries is assumed to support renewable energy integration. Differences in congestion management cost between demand- and supply-oriented deployment pathways of electrolyzer capacity lie in the range of 0.77–0.97 bn Euro if electrolyzers cannot be redispatched but almost diminish to 0.10–0.21 bn Euro in the scenarios that include electrolyzer as a redispatch capacity. The findings of this work assist policymakers and regulators with valuable insights into design options for future congestion management frameworks.
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10
ID:   193755


Comprehensive effects of policy mixes on the diffusion of heavy-duty hydrogen fuel cell electric trucks in China considering tec / Teng, Fei   Journal Article
Teng, Fei Journal Article
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Summary/Abstract Heavy-duty hydrogen fuel cell electric trucks (HD-FCETs) will play a pivotal role in achieving carbon neutrality in transportation in China. However, high cost has hindered its commercial diffusion, resulting in the dependence on financial policy support. With the phasing out of purchase subsidies, new policy mixes should be proposed. Therefore, a modified generalized Bass model based on technology learning is established to investigate the comprehensive effects of various policy mixes on the HD-FCETs diffusion including tractor-trailers, dump trucks, and straight trucks. About 113 policy mix scenarios - consisting of one or more policy tools from sales ban policy, hydrogen subsidy, and purchase tax - are simulated. The obtained results reveal that: (i) All policy mix scenarios can increase the ownership amount of HD-FCETs by 1.92%–35.7% by 2060 compared with no policy scenario; (ii) The most efficient policy mix scenario can reduce the cumulative social costs from 323.69 billion CNY to 210.3 billion CNY, while inappropriate policies and no technological advances could increase the cumulative social costs to 356.6 billion CNY and 732.6 billion CNY respectively; (iii) Among these policy tools, the sale ban policy is indispensable, moreover, both the HD-FCET classes and the policy intensity can affect the optimal policy mix choice.
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11
ID:   193753


Concentration versus diversification: a spatial deployment approach to improve the economics of wind power / Klie, Leo; Madlener, Reinhard   Journal Article
Madlener, Reinhard Journal Article
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Summary/Abstract Previous studies on the economics of onshore wind parks in Germany found that geographic diversification results in minor system costs savings (Pfluger et al., 2017a). Furthermore, such diversification does not necessarily result in higher market values (Eising et al., 2020) or better merchant profitability (Klie and Madlener, 2022). Therefore, the question arises whether an alternative allocation (i.e. concentration rather than diversification) of the German wind park fleet is more economical. In this paper, we compare the future (2030) market values, subsidy needs and total system costs (excl. intra-national grid costs due to congestion, redispatch and curtailment) of a more concentrated versus a more diversified allocation of onshore wind turbines in Germany. The results show that a concentration of turbines, in areas where the gap between market values and levelized costs of electricity is smallest (i.e. Northern Germany), is more beneficial in terms of subsidy need and system costs (ignoring congestion, redispatch and curtailment). The analysis further shows that these areas are also more beneficial in terms of market values, when using system-friendly turbine configurations selected based on the same approach. To incentivize such a selection of areas and turbine configurations based on minimal gaps between market values and levelized costs an alternative renewables support scheme is presented, which favors such minimal gaps in its auctioning process.
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12
ID:   193733


Coordinating social equity and emissions: Challenges in carbon tax policy / Semet, Raphaël   Journal Article
Semet, Raphaël Journal Article
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Summary/Abstract This study addresses the challenging trade-off between maximizing environmental benefits and ensuring social fairness in a domestic carbon tax context. Focusing on France, where the pathway to decarbonization has faced public opposition, we explore four redistribution policies to reverse the regressive effect of a €100/t of CO e carbon tax. While the homogeneous redistribution scheme reaches progressivity, its social and environmental implications are not without issues. A substantial portion of the emissions reduction achieved by the carbon tax dissipates due to increased emissions from overcompensated households. Additionally, the compensation generates higher tax burden inequality within and between income groups. Three tailored scenarios are designed to overcome misguided redistribution and maintain the social objective: a vertical scenario targeting financially constrained households, a horizontal scenario focusing on vulnerable households, and a mixed scenario considering both aspects. The vertical scenario efficiently reduces tax burden dispersion among the most affected households, limiting post-redistribution emissions (a mere 0.65% increase) and proving cost-effective for the government. While the horizontal scenario requires a larger share of tax revenue, it successfully reduces overall tax burden dispersion without increasing emissions. Compared to the previous scenario, the mixed scenario falls short in reducing tax burden inequality but exhibits promise in limiting greenhouse gas emissions.
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13
ID:   193745


Effect of carbon emission trading on enterprises’ sustainable development performance: a quasi-natural experiment based on carbon emission trading pilot in China / Weiwei Zhang   Journal Article
Weiwei Zhang Journal Article
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Summary/Abstract The establishment of carbon emission trading (CET) market is an important tool to achieve the “double carbon goal” in China. As an environmental regulatory tool based on market incentives, it remains to be tested whether participating enterprises can achieve sustainable development. This study selects the data of listed enterprises from 2010 to 2020, using the carbon trading pilot policy as a quasi-natural experiment, and employing the time-varying difference in difference (DID) and the improved propensity score matching (PSM)-time varying DID to jointly identify the impact and mechanism of CET pilot policy on the sustainable development performance of enterprises. The results showed that, first, participation in CET market is conducive to improving the sustainable development performance of enterprises, and the empirical results pass the robustness tests. Second, “investors' attention” and “government regulations” play a mediating and moderating role, respectively. Third, the effect of CET on economic, environmental and social aspects of enterprises’ sustainable development performance showed significant heterogeneous results with the difference of the pilot region, the nature of equity, and the size of the enterprise. This study verifies the effectiveness of the pilot CET policy and provides policy recommendations for establishing a national CET market.
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14
ID:   193714


Effectiveness of climate change regulations in the commercial real estate market / Akhtyrska, Yana; Fuerst, Franz   Journal Article
Akhtyrska, Yana Journal Article
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Summary/Abstract Legislation to increase building energy efficiency is a key climate change policy instrument in many countries. Although most of these regulations concern the housing stock, office buildings are also a considerable source of greenhouse gas emissions. Office markets face fewer pricing regulations than the residential market and may thus provide a clearer pricing signal of any policy impacts. This paper focusses on the introduction of Minimum Energy Efficiency Standards (MEES) in England and Wales. Applying machine-learning methods, Difference in Differences (DiD) and Fixed Effects (FE) panel data estimation to a comprehensive database of the London office market, our results suggest that the MEES policy has had a measurable and significant impact and lowered the rents of the combined group of affected office units by 6–8% following the announcement of MEES and in the run-up to implementation. A weakly significant 4.4% rental discount is detected for the bordering but unaffected class of EPC E-rated office buildings relative to the A–C EPC group, perhaps due to market expectations of a further expansion of MEES.
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15
ID:   193750


Efficient data-driven prediction of household carbon footprint in China with limited features / An, Na   Journal Article
An, Na Journal Article
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Summary/Abstract Household carbon footprints significantly contribute to global carbon emissions, yet the limited features hinder the accurate assessment in regions with inadequate data. In this study, we developed a data-driven model for evaluating household carbon footprint in China based on a nationwide questionnaire survey. Employing explainable machine learning, we identified the most influential features impacting the model outputs, which were utilized to assess household carbon footprints across Chinese provinces and cities from 2006 to 2021. Additionally, we constructed 27 scenarios with varying peak carbon times, technological evolution pathways, and cumulative carbon budgets to analyze climate change mitigation options for policymakers. The results demonstrate that using the XGBoost-TPE method, the model constructed with only five pivotal features achieves a confidence level of 87.4%. From 2006 to 2021, China's provinces exhibited fluctuating growth trends in household carbon footprints, with economically developed and eastern regions demonstrating higher per capita household carbon footprints. Scenario modelling reveals that combining multiple moderate scenarios yields a 26% increase in effectiveness compared to a single scenario. Promoting low-carbon household food, energy, and transport policies earlier or more aggressively can result in an earlier peak in household carbon footprints and a 2.5% greater carbon reduction.
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16
ID:   193715


Electrolysis as a flexibility resource on energy islands : the case of the North Sea / Lüth, Alexandra   Journal Article
Lüth, Alexandra Journal Article
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Summary/Abstract Energy islands are meant to facilitate offshore sector integration by combining offshore wind energy with power-to-x technologies and storage. In this study, we investigate the operation of electrolysers on energy islands, assess their potential contribution to flexibility provision, and analyse different market integration strategies of the islands. For this purpose, a two-stage stochastic optimisation model is developed to determine the cost-efficient dispatch for an integrated day-ahead and balancing electricity market. For the market integration of the energy island, we align our approach to the current debate and compare the case of a single offshore bidding zone to a case where the energy island is integrated into a home market zone. We find that electrolysers on energy islands will run at low capacity factors and provide flexibility in 29–36% of their run time. In addition, offshore electrolysers produce more hydrogen when they are allocated to an offshore bidding zone, and thus earn higher profits. We conclude that combining offshore wind with electrolysers on an energy island relies on additional economic incentives if their main role is envisioned to be the delivery of balancing flexibility.
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17
ID:   193732


Energy consumption and energy poverty in Morocco / Kettani, Maryème; Sanin, Maria Eugenia   Journal Article
Kettani, Maryème Journal Article
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Summary/Abstract Most of the world's increase in energy demand will come from the global south where there is the need to improve living standards while succeeding the energy transition. Herein we first study determinants of energy expenditure by source as well as energy poverty in Morocco. We find that socioeconomic determinants of energy consumption are in line with the literature on developed countries but, instead, elasticity magnitudes are generally higher, in line with the literature on low-income-countries. We also find that inequalities have an important impact on demand patterns: income elasticities are higher for households that consume the most for the case of electricity while the opposite happens with other forms of energy commonly used by low-income households. Regarding affordability, our results suggest that 14% of Moroccan households are energy poor. Energy poverty households usually are large families living in rural areas that are headed by inactive men with no education. We then measure the energy poverty gap per income quintile and asses to which extent fading-out subsidies for households for which PV panels are competitive could free resources that could be recycled to fill the energy poverty gap. In this regard we find that, if subsidies are dismantled for households for which PV panels are competitive when exposed to the natural price, the government would free 25% of the budget needed as a transfer to bridge the electricity poverty gap for the poor.
Key Words Energy Consumption  Morocco  Energy Poverty 
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18
ID:   193737


Energy justice: Lessons from offshore wind farm siting conflicts in South Korea / Park, Seona   Journal Article
Park, Seona Journal Article
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Summary/Abstract Given the growing salience of energy transition conflicts, policymakers need better tools to explain, prevent, and resolve them. The concept of energy justice highlights the normative direction of the energy system, and therefore, we examined the offshore wind farm siting conflict in Yeonggwang-gun, South Korea, through the lens of energy justice. In this study, we interviewed representatives of local stakeholder groups relevant to offshore wind farms and conducted text-mining analysis to extract the primary opinions of stakeholders. Through text-analysis, four primary factors were identified and discussed in relation to energy justice: gillnet fishing, consultation with the fishing village cooperative, damage by private developers, and a government-led conditional agreement. This mixed-method approach showed that the voices of fishing communities correlate with the four tenets of energy justice—distributional, procedural, recognition, and restorative justice. We discuss how recognition and restorative justice explain energy transition conflict under inadequate policy arrangements in South Korea, where little has been investigated in energy justice literature. By filling the gaps in energy transition conflict, we suggest inclusive policy strategies, revisiting the meaning and utility of participatory planning, scoping methods for Environmental and Social Impact Assessments, and just transition.
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19
ID:   193712


Energy savings potential and life cycle costs of deep energy retrofits in buildings with and without habitable style loft attic : a case study of Irelands residential sector / Considine, Brian   Journal Article
Considine, Brian Journal Article
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Summary/Abstract This paper evaluated the potential energy and life cycle cost (LCC) savings arising from the deep energy retrofit of residential buildings. The cost optimal model was determined for material upgrades and the addition of an air-to-water heat pump, where the household level of savings at 2023 energy prices will be dependent on the typical housing characteristics and weather conditions. LCC savings post retrofit for a detached dwelling insulated at the ceiling/rafter including installation of a heat pump amount to a €20,031-€21,370 for an uninsulated dwelling pre-retrofit, rising to €38,448 for dwellings with a habitable loft conversion. Partially insulated dwellings, pre-retrofit did not all incur favourable returns in investment, and in some cases were unviable. Although, the application of a 50% grant results in a viable return on investment for home owners. A sensitivity analysis found high discount rates, fuel prices and increasing capital costs can negate positive returns on investment. Finally, at a national level energy saving of 7.72 TWh by 2030 could be realised if the Irish Climate Action Plan 2023 retrofit targets are adhered to. In addition, total LCC savings could be valued at €1.4 billion. Where only material upgrade are pursued a loss occurs of €0.56 billion.
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20
ID:   193726


Energy transition policy via electric vehicles adoption in the developing world: Tunisia as a case study / Khammassi, Emna   Journal Article
Khammassi, Emna Journal Article
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Summary/Abstract In this study we developed a Sustainable Transport index (IST) to evaluate the impact of public policies on the sustainability of a transport system for different regions of a country. We focused on the energy transition policy via vehicular fleet electrification by analyzing the IST levels and their evolution in a country. The IST index was obtained from 89 sustainable transportation indicators representing the economic, social, and environmental dimensions of sustainability.
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